Bulgaria: Government accepts Bill to increase VAT registration thresholds starting January 1, 2023
The Bulgarian National Assembly is taking into consideration raising the VAT registration thresholds on April 21. This is the first in a series of measures that will be introduced as part of economic measures to combat soaring prices while also enhancing business conditions in the environment.
Bill No. 47-254-01-42 provides provisions to:
1.Raise the mandatory annual VAT registration threshold in two phases to:
- Effective 1 January 2023 – BGN 100,000 (approx. EUR 51,300)
- Effective 1 January 2024 – BGN 166,000 (approx. EUR 85,000)
Currently, the VAT registration threshold in Bulgaria is BGN 50,000 (roughly EUR 25,500) for all traders of taxable items, such as zero-rated supplies or financial or insurance services.
2.Establish VAT registration and deregistration processes to take effect on 1 January 2023 and 1 January 2024, respectively.
The primary goal of the proposed reforms is to reduce administrative and regulatory costs placed on micro, small, and certain medium-sized businesses, as well as natural persons engaged in independent economic activities.
Source: parliament.bg
